BIND CL (IFC-40429)

Countries
  • Argentina
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
BANCO INDUSTRIAL S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 55.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 55.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 55.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 7, 2018

Disclosed by Bank Mar 5, 2018


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Project Description

The proposed project (the “Project”) consists of an up to US$55 million debt facility to Banco Industrial S.A.(the “Bank” or “BIND”) to finance small and medium enterprises (“SMEs”), to be structured in up to three consecutive commitments with a 12-month bullet repayment each: (i) one commitment for up to US$15 million (“Loan #1”) to be committed within 4 months of IFC Board Approval; (ii) another commitment for up to US$20 million (“Loan #2”) to be committed within 20 months of IFC Board Approval, only after full repayment of Loan #1; and (iii) a final commitment for up to US$20 million (“Loan #3”) to be committed within 36 months of IFC Board Approval, only after full repayment of Loan #2.

According to the bank, the key risks and impacts derive from the Bank's capacity to identify and manage the potential E&S risks associated to sub-projects asset class in line with IFC requirements. Overall, BIND's SME portfolio risks are of medium to low nature, concentrated in retail and wholesale trade sectors and typically related to occupational, health and safety. The Bank currently has no E&S policy nor procedures. As part of the Project the Bank will develop and implement an Environmental and Social Management System ('ESMS'), as well as provide staff training. The Bank will also be required to enhance its Human Resources practices in line with IFC labor standards (PS2).

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Banco Industrial S.A. is a small bank in Argentina constituted in 1997 after the merger of two financial institutions: (i) Caja de Crédito La Industrial Cooperativa Limitada (founded in 1956); and (ii) Nuevo Banco de Azul S.A. (founded in 1928).


The Bank offers products and services to individuals (mainly retirees), SMEs and larger companies. It is ranked 22nd in terms of loans, with a market share of 0.67% and 26th in terms of deposits with a market share of 0.56%. The Bank has over 680 employees and relies on a network of 36 branches and 55 ATMs, with presence in the provinces of Buenos Aires, Córdoba, Santa Fe, Mendoza, Salta and Tucumán.


BIND is owned by Mrs. Carlota Evelina Durst de Meta and Mr. Andres Meta (Mrs. Durst de Meta's son). The Meta family has more than 30 years of experience in the Argentine financial system.

Contact Information

For inquiries about the project: 

Company                    Banco Industrial S.A.
Point of Contact         Gaston Eckelhart
Title                            Adscribed to Board (Adscripto a la Presidencia)
Telephone Number    (5411) 5238- 0200 (ext.27211)
Email                          geckelhart@bancoindustrial.com.ar
Mailing Address         Sarmiento 530 CABA (C1041AAL)
Website                      www.bind.com.ar

For inquiries about IFC: 

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/